Quickbooks, one of the most popular accounting software, is one of the go-to accounting software in the industry. A solid choice for a wide variety of businesses, especially for those who plan to work with a bookkeeper or an accountant regularly.
QuickBooks Software has various variations integrated within the software, a web-based system that can be accessed from any web browser. The software can be used in multiple areas such as bookkeeping, payroll, invoice management, bank reconciliation, expense tracking, financial reporting, and much more.
Although Quickbooks is a user-friendly software for various businesses' accounting purposes, it has its learning curve. After a thorough evaluation of the QuickBooks online, the software has multiple disadvantages that make it not user-friendly. Let us look at the disadvantages of using QuickBooks.
Disadvantages of using QuickBooks
- Expensive- The monthly plans of QuickBooks are pretty costly. The beginner plan starts from $25 and then moves up the expense, which is only for one account user.
- There is a limit on the account users for each plan.
- There is a steep learning curve to getting started.
- It cannot track inventory assemblies.
- It cannot track estimated to the actual project cost.
It is easy to get caught up in everyday operations as a small business owner. Thus, taking care of the accounts is an additional challenge. In the era of automation, with the help of various accounting softwares, it becomes easy to automate the accounting transactions while keeping the focus on everyday activities.
Let us look at the top 3 reasons why every business needs accounting software:
1. Improving the efficiency
One of the main advantages of using accounting softwares is that it improves efficiency. Many accounting softwares allow you to complete your bookkeeping in easy few steps. Thus, it improves efficiency as the business owners can concentrate on their business operations.
2. It automates your accounting
Automation makes accounting simple. Depending on the software you choose, the program can add totals and various other addons to customize the experience and make it user-friendly.
3. Simplified Tax Filing
Another advantage of using accounting software is that it simplifies tax filing. Disorganized records can cost the business a lot if the business owners do not know various tax laws properly. Thus, depending upon the software, it has multiple features to incorporate the different tax laws, resulting in simplified tax filing.
Small business owners love that Xero is quick and easy to use and avoids using accounting jargon. Hence, it is the best overall QuickBooks alternative.
The software does not use the words debits or credits; it uses easy-to-understand language that can be very well understood by non-specialists people as well. This software makes it easy to determine what the business owners need to do with the various transactions.
Advantages of using Xero
- The online cloud accounting software is a significant player in the markets of New Zealand, Australia, and the United Kingdom. There are various benefits of using Xero rather than using QuickBooks.
- Cloud Computing- There is no need to store files on the computer, as it is a cloud computing software.
Multi-device integration- As the files are stored on the cloud, it is easy to access all the files through any device. It has safe access to the accounts.
- Safety- One of the main concerns on cloud-based platforms is security. Xero is one of the most secure software in the market as it stores the data securely and encrypts it using industry-standard data encryption.
- Free product updates- Another advantage of using Xero is that it gives the users free updates to the latest and the most up-to-date versions. As long as you are a subscriber, you will have the latest version.
- Easy collaboration- Xero makes the collaboration between accountants, business owners, and bookkeepers straightforward. It also allows real-time updates.
- Great user experience- Xero is compatible with both the Windows and Mac Operating systems, reducing the limitations of the software. The modern interface is a big selling point of the software, and the way the things are aid out are very stylish and ergonomic.
- Addons available- Xero gives access to a wide variety of customized addons to create a personalized experience that suits the business needs. They are available in the Xero Marketplace, with the new addons being developed over time.
- Currency conversion in a snap- Xero allows you to accept payments and receive bills in various currencies. With the world having a more globalized approach, the businesses have become more internationalized, thus the need to have accounting software that incorporates different currencies.
Thus, stating the above advantages, it is one of the most successful alternatives for the QuickBooks software.
2. Wave Accounting
One of the best free options for accountants and businesses, Wave Accounting, is entirely free accounting software that is easy to set up and lets you connect your bank account so that the transactions are updated automatically. Various ult tools within the software include income and expense tracking, receipt scanning, endless collaborations, etc.
If the businesses are looking for simple accounting tools, Wave Accounting is a no better option.
Advantages of using Wave Accounting
- Wave Accounting is one of the best options if you are looking for a customized accounting options.
- Reconciliations and bank uploads are very easy through Wave Accounting.
- There is a hassle-free invoice management.
- Managing the transactions is very smooth.
- There is a user-friendly interface which makes navigation very easy.
- The learning curve of the Wave Accounting is not steep.
- There are no concerns about the damage to the data due to the cloud computing.
- Handling multi-currency is very simple through Wave Accounting.
- Most of the software in the software is free.
3. Easy Accountax
Another cloud-based accounting software, Easy Accountax, is the perfect solution for small businesses, accountants, and bookkeepers. Providing a one-stop solution, from accounting to payroll to invoicing, using this software is one of the most convenient ways to manage and operate all the accounting transactions.
It is the best option for businesses and people interested in cloud or online accounting to save time and upgrade the technology.
Easy Accountax displays a variety of features, including-
- Accounts Receivable
- Bank Reconciliation
- Billing and Invoicing
- Expense tracking
- Fixed Asset management
- Fund Accounting
- Payroll Management
- Project Accounting
- Purchase Order Management
- Tax Management
Advantages of using Easy Accountax
- CRM Integration- With Easy Accountax, there is a complete set of CRM tools that come with the application, thus helping the businesses keep track of the customers and the accounting itself.
- Asset Management- Easy Accountax also has a feature of asset management, making it one of the top alternatives for QuickBooks. The application's built-in asset management module takes note of all the company's physical holdings and then proceeds to track them and calculate their value over time.
- Purchasing Module- The purchasing module gives the power to track and place orders.
- ERP- The software also has several tools typically reserved for enterprise resource planning.
- Transaction Reconciliation- As the bank account can be connected with the software, as soon as there is a transaction, it is automatically recorded in the expense tracker, making it easy to visualize and track the expenses.
4. Align Books
Based in India, Align Books is one of the market leaders in accounting software. One-Stop solution for all the business needs, this online solution manages billing, accounting, inventory, finance, and much more.
Having a multi-device interface, AlignBooks is widely accepted in 19+ industry verticals and offers a free version.
This software allows the automatic deduction of TDS as per the norms and seamlessly integrates payroll with absolute transparency. With an option to manage financial accounting for multiple locations in multi-currency format, AlignBooks ensures optimum data security as it makes role-wise user access rules for enhanced security.
AlingBooks has a vast range of features, making it one of the top and best choices for QuickBooks alternatives.
- Accounts Receivable
- Bank Reconciliation
- Billing and Invoices
- CPA Firms
- Enterprise Asset Management
- Expense Tracking
- Financial Management
- Fixed Asset Management
- HR Management
- Inventory Management
- Mobile Access
- Order Management
- Payroll Management
- Project Accounting
Benefits of using AlignBooks:
Being a market leader, using AlignBooks has its benefits
- Streamlined Accounting Functions
- Financial and physical asset management
- Job work for workflow management
- Retails management with POS functions
- Purchase and inventory management
- Automatic updates & backups
- Access from anywhere, anytime
- Top grade data security
5. Free Agent
Specifically designed for small businesses, freelancers, and their accountants, Free Agent is another top alternative for Quickbooks. Free Agent is packed full of prominent features for small companies without confusing accounting jargon. The software helps the business owners take care of their day-to-day admin, from managing expenses to running RTI compliant payroll and time tracking. Along with that, the software also helps in creating and sending invoices and monitoring the cash flow.
FreeAgent also has a personalized 'Tax timeline' of upcoming deadlines and amounts due and the functionality to file VAT, RTI, and self-assessment returns.
The software is packed with various features, including-
- Accounts Payable
- Accounts REceivables
- Activity Dashboard
- Audit Trail
- Bank Reconciliation
- Data Synchronization
- Collections management
- Discount Management
- Dunning management, and much more
Benefits of using FreeAgent
- Easy to use platform- The software is highly intuitive hence, easy to use. Charts and graphs can readily be viewed easily at the dashboard. This, coupled with the vendor's provision of numerous support resources, makes the solution easy to use and navigate for novice users.
- Small business friendly- Explicitly designed for small businesses, FreeAgent offers all the financial and accounting tools that the little guys require.
- Expense tracking capability- Businesses can track their expenses by using bank feeds and bank statements imported into the system. Hence, it becomes easy for business owners to track the costs.
- Invoicing and Contact Management- Invoicing becomes very easy with the help of FreeAgent. The software converts the estimates into invoices within seconds. These invoices can be customized according to the brand as well. The system also has the provision to set and run the reminders to manage the invoices efficiently.
How to decide between QuickBooks and QuickBooks alternatives?
Choosing between the QuickBooks and QuickBooks alternatives is one of the most challenging tasks for various businesses. QuickBooks indeed is the industry standard, but it has its learning curve. Thus, it becomes difficult to navigate through the software.
Listed below are various questions that will help you answer this critical question.
Q. What all accounting functions do you need from the software?
A. Think about the following things that you might need from the software
- Invoice your clients or customers for payment later
- Track bills for future payments
- Track or manage equipment or other assets
- Track income and expenses
- Collect and remit sales tax
- Manage payroll for yourself or your team
Q. How often will you use the software?
A. It would help if you also answered the question related to the usage of the software. It would help if you decided how often you would use the software. That affects the decision a lot.
Q. What reports and applications do you need from the software to make business decisions?
A. Various softwares have the integration option and different other softwares that do not have the integration. Thus, as a business owner, you need to make an intelligent decision. You also need to decide if you would like to connect the software with any third-party softwares as well.
Q. What do you envision for the future of the business?
A. What are the plans of the business is another critical question that needs to be answered by every business owner when choosing the best software. It also needs to answer whether all the accounting processes must be handled in-house or if you are thinking of outsourcing it. This decision is affected if you would like to keep your business small or privately held or if you are planning to go public with it.
Thus, as we can see, every business owner needs various accounting softwares to make their operations easy, and there are various other alternatives than QuickBooks. All you need to do is keep in mind and choose the best software according to your needs.